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Chaswood Resources faces letters of demand from Ambank

CATALIST-LISTED food and beverage (F&B) outlet operator Chaswood Resources has received letters of demand from a legal counsel of Malaysia's Ambank seeking repayment for outstanding amounts on banking facilities extended to Chaswood and its subsidiaries.

Chaswood Resources said after Wednesday's trading close that Ambank is claiming amounts due and the interest accruing from an overdraft facility and term loans extended to its three subsidiaries.

All in, over RM3 million (S$1 million) was due from the overdraft facility and term loans as at June 30, 2018. Chaswood Resources has extended corporate guarantees for two of these three facilities.

The Malaysian bank is also seeking RM500 for each of the letters of demand issued for these claims.

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Chaswood Resources said that the High Court of Malaysia has granted a moratorium on legal proceedings against its subsidiaries.

It added that it is seeking legal advice since it is not covered by the same moratorium.

Chaswood Resources’ wholly-owned Malaysian subsidiary has sought debt restructuring via a scheme of arrangement in Malaysia.

Trading in Chaswood Resources’ shares has been suspended since June 18.